Octopus launches new VCT service

  • Story by: Jim Robinson
  • Magazine: InvestmentAdviser
  • Published Monday , July 28, 2008

Octopus, the leading VCT provider in the UK, has launched a new VCT portfolio service that aims to generate an average total return of more than 10 per cent a year.

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The service, the first of its kind in the UK, will acquire secondary market shares in 10-15 mature generalist and Aim VCTs, including those offered by Octopus.

The alternative investment specialist said it expected the return to include annual tax-free income of at least 6 per cent after charges.

Octopus director Chris Hulatt, who will oversee investment selection, said he would focus on acquiring shares trading on a “meaningful” discount to NAV.

“Many VCTs are now reaching maturity and demonstrating they have the ability to deliver a consistent dividend stream in excess of 7 per cent a year."

Few investors, however, have considered the VCT secondary market due to the extensive information, skills and time required to analyse the underlying investment portfolios, he said.

In the service’s first launch phase, Octopus will seek to raise as much as £10m between now and the end of the 2008-09 tax year. The minimum investment will be £30,000.

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